Cyprus appears secure from the immediate threat of jet fuel shortages despite a warning from International Energy Agency (IEA) head Fatih Birol that Europe only has six weeks of reserves left.
Supply disruptions caused by the conflict in the Middle East and the blockade of the Strait of Hormuz have sent shockwaves through the aviation industry. While several European countries have already seen flight cancellations due to fuel scarcity, Cyprus is in a stronger position with imports continuing as normal and significant emergency stocks in place.
Two Cypriot companies currently import jet fuel from refineries in Haifa and Elefsina without interruption. Furthermore, the Cyprus Organisation for Storage and Management of Oil Stocks (KODAP) maintains reserves designed to cover requirements for approximately three months.
Strategic reserves at 536,000 tonnes
KODAP is legally mandated to maintain oil product stocks equivalent to 90 days of average imports to ensure energy security. These reserves allow the Energy Minister to release quantities in the event of a supply crisis. For the 2025-2026 period, the minimum security stocks have been set at 536,000 tonnes by ministerial decree.
Industry professionals told Phileleftheros that there is no immediate cause for alarm at Cypriot airports. They noted that even if imports were to be cut off today, the island could meet its aviation needs for the coming months.
Rising fares and tourism concerns
Despite the stability of fuel supplies, the geopolitical situation is driving up costs. Airfares are already rising as airlines grapple with surging kerosene prices, which have doubled in some instances. Data shows that approximately 30 per cent of the kerosene used by European airlines passes through the Strait of Hormuz, making the continent highly vulnerable to further maritime disruptions.
While fuel levels are sufficient, the conflict is taking a toll on the island’s tourism sector. Air traffic for March and April has declined following regional instability and recent strikes on British Bases in Cyprus.
Industry sources report a wave of cancellations and a slowdown in new bookings. Although the situation has improved slightly in recent days, hotel operators warn of significant problems if the pace of bookings does not recover soon.